03 February 2014
Telefónica Deutschland successfully places a 500 million Euro 7-year
benchmark bond
- Successful placement of a 7-year bond
- Top 15 investors with more than 500 million Euro in orders
- Successful extension of the debt maturity profile
- Further investor diversification in the capital markets
MUNICH. Today Telefónica Deutschland has placed a senior unsecured bond
with a total volume of 500 million Euro due on February 03, 2021. The fixed
rate bond, issued by O2 Telefónica Deutschland Finanzierungs GmbH and
guaranteed by Telefónica Deutschland Holding AG, pays a 2.375 percent
coupon and was issued at a price of 99.624 percent, corresponding to an
issue spread of 100 bps over the 7-year Euro Midswap rate. The bond carries
a denomination of 1,000 Euro and was issued based on a bond security
prospectus. After the inaugural issuance of a 600 million Euro 5-year bond
in November, this is the second successful debt capital market transaction
Telefónica Deutschland executed within the last three months.
The transaction was announced in the morning of 3 February 2014. The
orderbook grew quickly with 155 orders from different investors. The top 15
investors made up more than 500 million Euro of orders in the orderbook,
demonstrating investors' great comfort into Telefónica Deutschland's credit
by these large single order sizes. The orderbook closed with a more than 2x
oversubscription. Geographically, the final allocation was skewed towards
German and Austrian investors (ca. 28 percent of the allocation). Fund
managers participated with above-average interest in the transaction and
were allocated ca. 61 percent of the deal size. Telefónica Deutschland
could achieve a yield of 2.434 percent in this 7-year 500 million Euro bond
issuance transaction.
The net proceeds of the bond will be used for general corporate purposes.
The net debt level of the company will not increase after the issuance of
the bond.
'This issuance is another great success for us', says Rachel Empey, CFO of
Telefónica Deutschland. 'After the very successful debut transaction in
November 2013, this is an important step to further establish ourselves in
the debt capital markets and further broaden our investor base'.
The bond will be listed for trading in the Regulated Market of the
Luxembourg Stock Exchange under the ISIN code XS1025752293 as of 10
February 2014. The prospectus is available on Telefónica Deutschland's
website.
HSBC, UBS Investment Bank and UniCredit Bank AG acted as joint bookrunners
for the transaction.
More Information:
Telefónica Deutschland
Investor Relations
Georg-Brauchle-Ring 23-25
D-80992 München
t +49 (0)89 2442-1010
f +49 (0)89 2442-2000
e ir-deutschland@telefonica.com
End of Corporate News

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